BILL NUMBER: SB 1247	CHAPTERED  09/14/99

	CHAPTER   371
	FILED WITH SECRETARY OF STATE   SEPTEMBER 14, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 14, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	PASSED THE ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   JULY 2, 1999
	AMENDED IN ASSEMBLY   JUNE 17, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Escutia
   (Principal coauthor:  Senator Chesbro)

                        FEBRUARY 26, 1999

   An act to amend Section 10072 of the Welfare and Institutions
Code, relating to public social services.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1247, Escutia.  CalWORKs:  electronic benefits transfer.
   Existing law provides for the California Work Opportunity and
Responsibility to Kids (CalWORKs) program, under which each county
provides cash assistance and other benefits to qualified low-income
families.
   Existing law permits a county to elect to deliver CalWORKs
benefits through the use of an electronic benefits transfer system.
   This bill would require that when CalWORKs benefits are delivered
pursuant to electronic benefits transfers, benefits shall be
staggered over a period of 3 calendar days, unless a county requests
a waiver from the department and the waiver is approved, or except in
cases of hardship.
   Existing law requires counties to provide multiple electronic
benefits transfer cards to adult members of a household or assistance
unit under certain circumstances.
   This bill would instead require counties to provide one card to
each adult member of a household or assistance unit.
   Since the bill would impose requirements on each county, the bill
would create a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 10072 of the Welfare and Institutions Code is
amended to read:
   10072.  The electronic benefits transfer system required by this
chapter shall be designed to do, but not be limited to, all of the
following:
   (a) To the extent permitted by federal law and the rules of the
program providing the benefits, recipients who are required to
receive their benefits using an electronic benefits transfer system
shall be permitted to gain access to the benefits in any part of the
state where electronic benefits transfers are accepted.  All
electronic benefits transfer systems in this state shall be designed
to allow recipients to gain access to their benefits by using every
other electronic benefits transfer system.
   (b) To the maximum extent feasible, electronic benefits transfer
systems shall be designed to be compatible with the electronic
benefits transfer systems in other states.
   (c) All reasonable measures shall be taken in order to ensure that
recipients have access to electronically issued benefits through
systems such as automated teller machines, point-of-sale devices, or
other devices that accept electronic benefits transfer transactions.
Benefits provided under Chapter 2 (commencing with Section 11200) of
Part 3 shall be staggered over a period of three calendar days,
unless a county requests a waiver from the department and the waiver
is approved, or in cases of hardship pursuant to subdivision (l).
   (d) The system shall provide for reasonable access to benefits to
recipients who demonstrate an inability to use, an electronic
benefits transfer card or other aspect of the system because of
disability, language, lack of access, or other barrier.  These
alternative methods shall conform to the requirements of the
Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.),
including reasonable accommodations for recipients who, because of
physical or mental disabilities, are unable to operate or otherwise
make effective use of the electronic benefits transfer system.
   (e) The system shall permit a recipient the option to choose a
personal identification number, also known as a "pin" number, to
assist the recipient to remember his or her number in order to allow
access to benefits.  Whenever an institution, authorized
representative, or other third party not part of the recipient
household or assistance unit has been issued an electronic benefits
transfer card, either in lieu of, or in addition to, the recipient,
the third party shall have a separate card and personal
identification number.  At the option of the recipient, he or she may
designate whether restrictions apply to the third party's access to
the recipient's benefits.  At the option of the recipient head of
household or assistance unit, the county shall provide one electronic
benefits transfer card to each adult member to enable them to access
benefits.
   (f) The system shall have a 24-hour-per-day toll-free telephone
hotline for the reporting of lost or stolen cards and that will
provide recipients with information on how to have the card and
personal identification number replaced.
   (g) A recipient shall not incur any loss of electronic benefits
after reporting his or her electronic benefits transfer card or
personal identification number has been lost or stolen.  The system
shall provide for the prompt replacement of lost or stolen electronic
benefits transfer cards and personal identification numbers.
Electronic benefits for which the case was determined eligible and
that were not withdrawn by transactions using an authorized personal
identification number for the account shall also be promptly
replaced.
   (h) Electronic benefits transfer system consumers shall be
informed on how to use electronic benefits transfer cards and how to
protect them from misuse.
   (i) Procedures shall be developed for error resolution.
   (j) No fee shall be charged by the state, a county, or an
electronic benefits processor certified by the state to retailers
participating in the electronic benefits transfer system.
   (k) Except for food stamp transactions, a recipient may be charged
a fee, not to exceed the amount allowed by applicable state and
federal law and customarily charged to other customers, for cash
withdrawal transactions that exceed four per month.
   (l) A county shall exempt an individual from the three-day
staggering requirement under subdivision (c) on a case-by-case basis
for hardship.  Hardship includes, but is not limited to, the
incurrence of late charges on an individual's housing payments.
   (m) No later than May 1, 2000, the department shall prepare and
submit a report to the Senate Health and Human Services Committee and
the Assembly Committee on Human Services.  The report shall contain
estimates of the number of counties that may opt to issue cash
benefits provided under Chapter 2 (commencing with Section 11200) of
Part 3 by electronics benefits transfer and the amount of interest
payments that would accrue to the counties pursuant to the three-day
staggering requirement of subdivision (c).
  SEC. 2.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
